Nowadays, Netflix almost takes the place of traditional cable cast especially in United States. The company has 46M subscribers in US, and 79M subscribers worldwide in the 2nd quarter of 2016. Surprisingly, behind Netflix coming to these days is Moore’s law.
Netflix was in the physical DVD by mail business when the company was established. They predict that they need 8 more years to have satisfactory technology for both providers and consumers when the streaming idea comes to their mind. Thus, they form their strategy based on trustworthiness. They spend these 8 years to be a trustworthy company whereas they started to work on streaming. They worked with US Post Office instead of innovative ones for posting movies to prevent mis-routing. In the meanwhile, Blockbusters was the dominant player in the market but they ignore the streaming technology.
Today, Netflix is one of the most prestigious companies whereas Blockbusters has announced the bankruptcy and 1.46 billion dollars dept.